US Inflation & High Bond Yields -- How Both Are Fueled By Congress -- Why The Fed Can't Fix It
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- Опубліковано 22 тра 2024
- The Fed has been fighting inflation for two years now with rapid interest rate increases and the highest interest rates in 20 years. Nobody seems to be blaming Washington where so much of inflation and high interest rates are fueled by the ever increasing debt and a mountain of yearly deficit spending, regardless of which political part is in temporary control.
See how bond yields are being propped up by government overspending and how the Treasury Dept manipulation of long term debt may drive interest rates ever higher. Great if you love some good bond yields. Bad if your bonds are losing value or you want to buy a house.
fiscaldata.treasury.gov/ameri...
www.usaspending.gov/explorer/...
www.thebalancemoney.com/curre...
bipartisanpolicy.org/report/d...
www.ft.com/content/d54e5886-7...
www.cnbc.com/2024/05/15/jpmor...
www.cbo.gov/publication/59710....
DISCLAIMER
-All of the content found in this video is for ENTERTAINMENT purposes only. We are NOT financial advisors and are not responsible for any losses in your personal investing experience.
Thanks for excellent (as usual) bipartisan analysis
Our pleasure!
Thanks for your work on these videos.
Glad you like them!
Thanks for this informative video. Appreciate the information
Thanks for watching!
Very insightful. Thank you for sharing your observations and findings! It’s good to see all perspectives of national debts.
Thanks for watching!
Thanks for sharing your insights and references, enjoyed the concise presentation. A lot to take in, look forward to poking around on the links to get a better grasp of the situation.
Glad you enjoyed it!
Take a look at the trend of the proportion of US government spending on entitlements (personal and corporate) since the end of WW2. Non-productive entitlement spending is crowding out spending on investments that improve the economic potential of the country, such as infrastructure. People sometimes say that tax rates should revert to those of 1960. To that I say then spending allocations should, too. Include reverting the size of the Federal Register, the Tax Code, the number of Federal Departments, Agencies, Bureaus and you have a deal!
Surprisingly as I was researching for this video I discovered that until about 120 years ago the government was mostly funded by taxes on tobacco, alcohol, tarrifs and the like. Would be interesting to see how the government spent money way back then.
@@FatherNSonInvesting Until the 16th Amendment was ratified, that is how the federal government was funded.
(I posted another comment, which google deleted, I think because of a link. Will try to send separately.)
Finally a good video
Glad that it was helpful!
Excellent video. I could listen to this kind of stuff all day. I'm a hardcore liberal but I'm also concerned with the deficit and debt. The problem is, so much government spending is propping up the economy. How do you reduce spending fairly and in an orderly away so you don't cause a great depression? It's a tricky question and of course no one wants to give up the spending that benefits them.
can we really unbuild the house of cards? Perhaps, inflate it away and have younger generations pay for it. Hey, rich did get richer in the last few years.
Remove the greatest areas of waste.
@@stephenkutney9626 what are the greatest areas of waste?
There was an interesting article about where the government wastes money that I read while preparing for this video. I will see if I can find it and perhaps use it to make another video. Thanks for the topic idea!
@@FatherNSonInvesting I like the idea too. It may had been this channel, but remember the topic of how Japan with its aging population's healthcare is far less than US. Also, can't help but to wonder what 'creative' ways we do to resolve SS and Debt issues.
Thanks for sharing. It makes also sense to check usd current and future depreciation against other assets. Getting high interests in depreciated asset (currency) can mean losses. Long term bond yields are strongly corellated with consumer inflation expectations. This is why Fed speaks hawkish. They want people to believe that this is transitory 😂😂😂 and to anchor long term bond yields down. My guess is that current narrative will eventually collapse and long term yields will enter a bull cycle.
we r in trouble interest debts 3 months 1t payment
always good to know the whole truth rather than the partial truth.
Did the article in NPR objectively look at the situation or did they stick with the same myopic as their article title?
They did not give much further details about the 22 % increase in tax receipts or the 23% increase in spending other than to say about $26B of the increased spending was due to increased interest on the debt compared to last year.
@@FatherNSonInvesting Ok. Thanks. Just curious,
Thank you for your work and comments. What do you think is the reason for yields to be maintained at these low levels while China is selling more bonds in the open market? Who is buying?
The Fed will soon be buying (June 1). Their balance sheet run off will slow to $25B per month. Could be some are locking in rates before the Fed starts buying? Could be others are also locking rates still thinking that the Fed will lower interest rates in September? I see that you have the longer term perspective in mind though. Just who will be buying? You are right that China is selling (and trying to lure others into their BRICS stratosphere). Japan yields are up and I read that US banks and financial institutions are buying more EU bonds since it looks like the EU is closer to lowering their interest rates. You ask a good question---Who is buying and who will buy??
apple worth 3T outside US dont pay taxes
First of all you’re using metrics given to you by the people who are screwing everything up now do you actually believe you’ll come to some conclusion that makes any sense? Isn’t that a little bit like asking your three-year-old if he took the last cookie and depending on him for a truthful answer?
Yes, I did consider that. Certainly the are other organizations that are tracking some of this but have tilts toward one political spectrum or the other (ex. Heritage foundation). Sometimes one just has to use the best information possible. In the past I have wondered about folks who seem so distrustful of the government. I am beginning to understand some of that distrust though. I think there are too many who just want to be reelected and maintain power instead of serving our country. Thanks for watching and commenting!